Niva Bupa Health Insurance Company Ltd. (formerly Max Bupa) is set to launch its IPO, a Book Built Issue offering ₹22,000 Crores. The IPO includes a Fresh Issue of 1,081.08 Lakh shares worth ₹800.00 Crores and an Offer for Sale of 1,891.89 Lakh shares totaling ₹14,00.00 Crores. The subscription period begins on November 07, 2024, and ends on November 11, 2024, with shares expected to list on the BSE and NSE on November 14, 2024.

The share price band for the Niva Bupa IPO is set between ₹70 and ₹74 per equity share, which would place the company’s market capitalization at ₹13,519.99 Crores based on the upper band. Retail investors can apply for a minimum of ₹14,800, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,07,200 for 14 lots. The IPO is being managed by Morgan Stanley, ICICI Securities, Axis Capital, Kotak Mahindra Capital, HDFC Bank, and Motilal Oswal Investment Advisors, with KFin Technologies acting as the registrar.

The Grey Market Premium (GMP) for this IPO is ₹0, indicating no expected listing gain, based on the company's current financial performance. On the second day of the subscription period (November 08, 2024), the IPO was subscribed 1.17 times.

In terms of financials, Niva Bupa has seen significant revenue growth, with revenues of ₹41,186.31 Million in Fiscal 2024, up from ₹28,592.35 Million in Fiscal 2023 and ₹18,845.42 Million in Fiscal 2022. However, its profitability remains modest, with a Profit After Tax (PAT) of ₹818.52 Million in Fiscal 2024, though its RoE stands at a relatively low 5.68%.

The IPO’s valuation is based on a pre-issue EPS of ₹0.51 and a post-issue EPS of ₹0.45, giving a pre-issue P/E ratio of 145.09x and a post-issue P/E ratio of 164.44x. These figures suggest that the IPO is fully priced, particularly given the industry’s average P/E of 38.60x.

Given the company's financial outlook and the high valuation, many experts recommend caution. The Niva Bupa IPO appears fully priced, and investors seeking short-term listing gains or long-term returns might consider exploring other options.

Objectives of the IPO: The proceeds from the Fresh Issue will be utilized for the following:

1. Augmenting capital to maintain and strengthen solvency levels.
2. General corporate purposes.

IPO Allotment Process: The IPO allotment will be finalized on November 12, 2024, and investors can check their allotment status on the registrar's website. By entering the application number, PAN, or DP Client ID, investors can track whether they have received shares.

IPO Review Conclusion: While Niva Bupa’s health insurance offerings have seen steady growth, the financial metrics and high valuation of this IPO suggest that it may not offer immediate listing gains or long-term investment potential. Investors should carefully consider their risk appetite before applying for the Niva Bupa Health Insurance IPO.

The Upcoming IPOs in this week and coming weeks are Mangal Compusolution, Onyx Biotec, Rosmerta Digital, NTPC Green, Avanse Financial and Black Buck.

The Current active IPO are  Niva Bupa Health and Neelam Lines and Garments.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.